The UK supervisors recently issued another joint paper proposing further regulation. This time the regulatory eye is firmly focused on those third parties that have embedded themselves so well within the industry that they pose a significant risk to the sector, the UK economy, and global infrastructure.
The Regulators Perspective On Operational Resilience
The regulators have repeatedly reminded firms that they remain accountable for operational resilience regardless of whether they rely upon third parties to deliver their important business services.
However, the regulators acknowledge that:
“no single firm or FMI can adequately monitor or manage the systemic risks that certain third parties pose to the supervisory authorities’ objectives, including UK financial stability, market integrity and consumer protection.”
New Requirements For Critical Third Parties
Hence the proposals to implement requirements specifically for these critical third parties (CTPs).
Find out more about the upcoming changes.